USDA Rural Housing Service issues final rule expanding affordable home options in rural areas

The U.S. Department of Agriculture Rural Development has issued the final rule for the Single Family Housing Guaranteed Loan Program’s income-producing accessory dwelling unit provisions, broadening housing choices for rural homebuyers. The rule lets lenders provide USDA-guaranteed home loans for properties that include an income-producing ADU. It will take effect on Dec. 28, 2026.

“President Trump promised to put American families first and that includes making the dream of homeownership achievable in rural America,” said Under Secretary for Rural Development Glen Smith. “By giving rural homebuyers the flexibility to earn income from an ADU, we’re helping families afford a home and strengthen the small towns that are the backbone of this country.”

“Under the leadership of President Trump and Agriculture Secretary Brooke Rollins, USDA Rural Development is committed to reducing barriers to homeownership by implementing solutions that increase the supply of affordable housing for rural residents,” said Rural Housing Service Administrator George Kelly.

Through the Single Family Housing Guaranteed Loan Program, Rural Development gives approved lenders the ability to offer 100% financed loans with no money down to eligible low- and moderate-income households in rural areas. Rural Development backs the 90% loan guarantee. With a Single Family Housing loan guarantee, homebuyers can purchase an existing home, build a new one, or pay for rehabilitation, improvements, or relocation of a home.